Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

YoungUpstarts

AUGUST 31, 2017

And as the Internal Revenue Service continues to wage war against fraud and identity theft, filing clean, complete returns is key — especially as your business scales. If your startup is eyeing international expansion early on, your tax compliance and planning needs, both home and abroad, immediately ratchet up. Plan ahead.

Ratchet 113

Ratchet Merger New York Engineer 113

Up and Running

NOVEMBER 4, 2014

As Halloween comes to a close and attention turns to Thanksgiving and the winter holidays, you’ll probably notice a perceptible dip in employee productivity. Many employees save up their vacation time until the end of the year, hoping to spend one or more weeks at home with their families, or traveling to meet with loved ones.

Product 99

Product Ratchet Employee Demand 99

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Revenue multiple? At an accelerator …. Your A round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

The Startup Toolkit

JANUARY 10, 2017

Employees can blackmail or extort you. Investors can delay until you’re desperate and then ratchet the terms. They’re now profitable, have a great team, and doing half a million quid a year in recurring revenue. It’s not just cofounders. Partners can break their contracts. Suppliers can fail to deliver.

Cofounder 20

Cofounder Technical Review Vesting Ratchet 20